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A company has issued common equity with a beta of 0.89. The risk-free rate is 3.2% and the expected risk premium is 6.6%, what is

A company has issued common equity with a beta of 0.89. The risk-free rate is 3.2% and the expected risk premium is 6.6%, what is the companys cost of equity?

  1. 9.88%
  2. 6.6%
  3. 6.23%
  4. 9.07%

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